Abstract
To explain why many manufacturing indusries have remained higly concentrated even as industry demand increases, John Sutton (1991, 1998) has developed the theory of endogenous sunk costs which depends on game-theoretic analyses. Sutton’s explanation to this problem is that the levels of spending such as advertising and R&D are not exogenous to the firms, but are the outcomes of the firms’ choices. Because, advertising and R&D can both be thought of as sunk costs incurred with a view to enhancing consumer’ willingness-to-pay for the firm’s product(s). In the Sutton’s market configuration, the level of these sunk expenditures also determines the toughness of non-price competition mechanism. In this study, Sutton’s endogenous sunk cost theory is discussed and evaluated.
References
- Bain, J. S. (1956). Barriers to new competition. Cambridge: Harvard University Press.
- Baldani, J. ve Masson, R. T. (1984). “Economies of scale, strategic advertising and fully Credible entry deterrence”. Review of Industrial Organization, 1(3), ss. 190-205.
- Church, J. ve Ware, R. (2000). Industrial organization: a strategic approach, McGraw-Hill.
- Clarke, R. (1985). Industrial economics. London: Basil Blackwell Ltd
- Dasgupta, P. ve Stiglitz, J. E. (1980). “Industrial structure and the nature of innovative activity”. Economic Journal, 90(358), ss.266-293.
- Fudenberg, D. ve Tirole J. (1984). “The fat cat effect, the puppy dog ploy and the lean And hungry look”. American Economic Review, Papers and Proceedings, 74(2), ss.361-368.
- Schmalensee, R. (1983). “Advertising and entry deterrence”. Journal of Political Economy, 91(4), ss. 636-653.
- Schmalensee, R. (1992). “Sunk costs and market structure: a review article”. The Journal Of Industrial Economics, 40(2), 125-134.
- Shaked, A. ve Sutton, J. (1982). “Relaxing price competition through product differentiation”. Review of Economic Studies, 49, ss. 3-13.
- Shaked, A. ve Sutton, J. (1987). “Product differentiation and industrial structure”. Journal of Industrial Economics, 36(2), 131-146.
- Sutton, J. (1986). “Vertical product differentation: some basic themes”. American Economic Review, 76(2), ss. 393-398.
- Sutton, J. (1989). “Endogenous sunk costs and the structure of advertising intensive industries”. European Economic Review, 33(2-3), ss. 335-344. Sutton, J. (1991). Sunk costs and market structure. Cambridge, MA: MIT Press. Sutton, J. (1998). Technology and market structure. Cambridge, MA: MIT Press Sutton, J. (2007). Market structure: theory and evidence. M. Armstrong, & R. Porter içinde, Handbook of industrial organization (Cilt 3, ss. 23012368). Elsevier.
- Symeonidis, G. (2000). “Price competition, non price competition and market structure: Theory and evidence from UK”. Economics, 67(267), ss. 4374
- Tirole, J. (1995). The theory of industrial organization. Cambridge, MA: The MIT Press.
- Vasconcelos, H. (2006). “Endogenous mergers in endogenous sunk cost industries”. International Journal of Industrial Organization, 24(2), ss. 227-2
- Vickers, J. (1986). “The evolution of market structure when there is a sequence of innovations”. Journal of Industrial Economics, 35(1), ss. 1-12.
Abstract
Endüstrinin ürünlerinin talebinin artmasına karşılık birçok imalat sanayi
endüstrisinin neden yüksek oranlarda yoğunlaştığını açıklamak üzere, John Sutton (1991,
1998) oyun-teorik analizlere dayandırılmış içsel batık maliyet teorisini geliştirmiştir.
Sutton’un bu soruna yönelik açıklaması, reklam ve Ar-Ge gibi harcamaların firmalar
açısından dışsal olarak belirlenmediği, fakat firma kararlarının sonucunda içsel olarak
belirlendiği yönündedir. Çünkü reklam ve Ar-Ge harcamaları, firmanın ürününe yönelik
tüketicinin satın alma isteğinin artırılması amacıyla katlanılan batık maliyetler olarak
düşünülmektedir. Sutton’un piyasa konfigürasyonunda bu batık harcamaların düzeyi
ayrıca fiyat dışı rekabetin şiddetini de belirlemektedir. Bu çalışmada Sutton’un içsel batık
maliyet teorisi ele alınıp incelenmektedir.
References
- Bain, J. S. (1956). Barriers to new competition. Cambridge: Harvard University Press.
- Baldani, J. ve Masson, R. T. (1984). “Economies of scale, strategic advertising and fully Credible entry deterrence”. Review of Industrial Organization, 1(3), ss. 190-205.
- Church, J. ve Ware, R. (2000). Industrial organization: a strategic approach, McGraw-Hill.
- Clarke, R. (1985). Industrial economics. London: Basil Blackwell Ltd
- Dasgupta, P. ve Stiglitz, J. E. (1980). “Industrial structure and the nature of innovative activity”. Economic Journal, 90(358), ss.266-293.
- Fudenberg, D. ve Tirole J. (1984). “The fat cat effect, the puppy dog ploy and the lean And hungry look”. American Economic Review, Papers and Proceedings, 74(2), ss.361-368.
- Schmalensee, R. (1983). “Advertising and entry deterrence”. Journal of Political Economy, 91(4), ss. 636-653.
- Schmalensee, R. (1992). “Sunk costs and market structure: a review article”. The Journal Of Industrial Economics, 40(2), 125-134.
- Shaked, A. ve Sutton, J. (1982). “Relaxing price competition through product differentiation”. Review of Economic Studies, 49, ss. 3-13.
- Shaked, A. ve Sutton, J. (1987). “Product differentiation and industrial structure”. Journal of Industrial Economics, 36(2), 131-146.
- Sutton, J. (1986). “Vertical product differentation: some basic themes”. American Economic Review, 76(2), ss. 393-398.
- Sutton, J. (1989). “Endogenous sunk costs and the structure of advertising intensive industries”. European Economic Review, 33(2-3), ss. 335-344. Sutton, J. (1991). Sunk costs and market structure. Cambridge, MA: MIT Press. Sutton, J. (1998). Technology and market structure. Cambridge, MA: MIT Press Sutton, J. (2007). Market structure: theory and evidence. M. Armstrong, & R. Porter içinde, Handbook of industrial organization (Cilt 3, ss. 23012368). Elsevier.
- Symeonidis, G. (2000). “Price competition, non price competition and market structure: Theory and evidence from UK”. Economics, 67(267), ss. 4374
- Tirole, J. (1995). The theory of industrial organization. Cambridge, MA: The MIT Press.
- Vasconcelos, H. (2006). “Endogenous mergers in endogenous sunk cost industries”. International Journal of Industrial Organization, 24(2), ss. 227-2
- Vickers, J. (1986). “The evolution of market structure when there is a sequence of innovations”. Journal of Industrial Economics, 35(1), ss. 1-12.
Details
| Primary Language | Turkish |
|---|---|
| Journal Section | Makaleler |
| Authors | |
| Publication Date | February 3, 2014 |
| Published in Issue | Year 2014 Volume: 28 Issue: 1 |
